Tag: business economics and quantitative methods
Questions Related to business economics and quantitative methods
Which of the following is a component of the capital budget?
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Capital receipts
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Revenue expenditure
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Capital expenditure
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Both A & C
Capital budget are the money receipts or payments that lead to decrease or increase in the value of asset and liability of the government. It is divided into two heads
A deficit budget proves to be useful during the periods of ____________.
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inflation
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high employment
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depression
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none of the above
Deficit budget is the type of budget where the estimated government expenditure is greater than the estimated government revenue due to which there is a deficit in the budget. Deficit budget is usually regarded as a negative indicator for the economy but it is regarded to be useful at the time of depression in the economy as it results in reduced taxes or increased public expenditure that resolves the situation of the depressed economy.
Government budget comprises of which of the following?
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Revenue budget
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Capital budget
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Administration budget
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Both A & B
Budget is a statement of the estimates of the government receipts and government expenditure during the period of the financial year. There are two main component of a budget:
1. Revenue budget - These are the money receipts or payments that does not lead to decrease or increase in the value of asset and liability of the government.
2. Capital budget - These are the money receipts or payments that lead to decrease or increase in the value of asset and liability of the government.
A surplus budget is useful in correcting inflationary gap by lowering the level of _____________.
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taxation
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effective demand
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aggregate supply
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income inequality
Revenue receipts of the government are classified into:
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Tax revenue and borrowings
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Tax and non-tax revenue
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Borrowings and recovery of loans
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Non-tax revenue and recovery of loans
Revenue receipts refers to all such types of money receipts that do not create any liability for the government or does not reduce any asset of the government. These basically includes tax and non-tax revenue received by the government from the general public.
Tax revenue is the main source of regular receipts of the government.
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True
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False
Tax revenue are the money receipts of the government by the general public for the basic services which the public is availing from the government. These receipts are recurring in nature and it is an obligation for all the civilians of a country to pay tax.
Capital receipts are regular and recurring in nature.
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True
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False
False.
Capital receipts are all those money receipts of the government that either create a liability for the government or reduce an asset of the government. These receipts are not recurring in nature as it is related to the valuation of assets and liabilities of the government.
Which of these is major component of external debt?
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Short term debt
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Long term debt
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Commercial borrowings
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NRI deposits
External debt is the portion of a country's debt that was borrowed from foreign lenders, including commercial banks, governments, or international financial institutions. These loans, including interest, must usually be paid in the currency in which the loan was made.
The word budget is derived from the ___________ word 'bougette'.
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Latin
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German
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French
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none of the above
The word budget is derived from a french word 'bougette' which means 'little bag' from where the budget concept was derived and after years of development the budget for every single country was started getting prepared.
Budget is a/an _____________ statement of expenditure and revenue of the government prepared by the financial authority of the country.
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annual
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semi-annual
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quarterly
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monthly